Grants for Alternative Fuel Government Fleets

The Texas Commission on Environmental Quality (TCEQ) is accepting applications for the Governmental Alternative Fuel Fleet Grant Program (GAFF) under the Texas Emissions Reduction Plan (TERP). This program provides grants to state agencies and political subdivisions to support the purchase or lease of new vehicles powered by alternative fuels or the installation of refueling infrastructure. Alternative fuels eligible under the program include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), hydrogen (fuel cells), and electricity for electric or plug-in hybrid vehicles. The primary goal is to reduce emissions and promote cleaner energy use in governmental fleets. Eligible applicants are state agencies and political subdivisions that operate fleets of 15 or more motor vehicles. Entities such as counties, municipalities, school districts, river authorities, and special districts, as well as mass transit and school transportation providers, are encouraged to apply. Projects must prioritize activities such as replacing older vehicles, acquiring high-mileage vehicles, or purchasing vehicles that use CNG, LNG, or LPG. Vehicles and infrastructure must meet specific emissions and efficiency standards, and refueling equipment must align with vehicle use cases. The program has a total funding allocation of $4 million, with predetermined grant amounts based on vehicle class. Funding ranges from $17,000 for smaller vehicles (under 6,000 pounds) to $80,000 for Class 7-8 vehicles, including buses. Refueling infrastructure grants are capped at 10% of the total requested vehicle grant amount. Eligible costs include the purchase or lease of vehicles, infrastructure installation, and associated services, while ineligible costs include administrative expenses, land purchases, and food or drink. Applicants must disclose any conflicts of interest and adhere to federal and state guidelines. Applications must be submitted electronically via the TERP Online Submission System by 5:00 p.m. CT on February 5, 2025. The grant period begins with the execution of contracts and ends no later than August 31, 2030. Vehicles and infrastructure must be operational for at least three years, with annual usage reports required. Grantees may request upfront payments or reimbursement for eligible expenses, and vehicles replaced under the program must be destroyed. Projects will be evaluated and scored based on criteria such as the type of entity, project location, emissions reductions, and the number of vehicles and infrastructure supported. Priority will be given to projects in or near nonattainment areas or affected counties, with additional points awarded for substantial emissions reductions and the use of specific fuel types. TCEQ may impose additional conditions, reduce funding, or reject applications based on compliance history or project risks. The GAFF program provides an opportunity for governmental entities in Texas to modernize their fleets, reduce emissions, and contribute to cleaner air quality. Prospective applicants should review eligibility requirements and prepare their applications promptly to meet the submission deadline.